Oregon § 657.990 - Penalties

§ 657.990. Penalties

657.990 Penalties

GENERALLY

657.005 Short title. This chapter shall be known and may be cited as the Employment Department Law. [Amended by 1959 c.583 14; 1993 c.344 2]

657.007 Conflict with state law. For purposes of this chapter, if any provision of state law conflicts with any provision of this chapter, this chapter shall control. [2009 c.115 2]

657.008 Savings provision; notice to Legislative Counsel of nonconforming law. (1) If the United States Secretary of Labor serves notice that the provisions of any section of this chapter, any amendment to any section of this chapter or rules adopted under any section of this chapter fail to meet the requirements of the Social Security Act or the Federal Unemployment Tax Act, the nonconforming provisions or rules shall no longer be of any force or effect.

(2) The Director of the Employment Department shall notify the Legislative Counsel as soon as practicable after receipt of the notice described in subsection (1) of this section. [2025 c.43 8]

DEFINITIONS

657.010 General definitions. As used in this chapter, unless the context requires otherwise:

(1) Base year means the first four of the last five completed calendar quarters preceding the benefit year.

(2) Benefits means the money allowances payable to unemployed persons under this chapter.

(3) Benefit year means a period of 52 consecutive weeks commencing with the first week with respect to which an individual files an initial valid claim for benefits, and thereafter the 52 consecutive weeks period beginning with the first week with respect to which the individual next files an initial valid claim after the termination of the individual s last preceding benefit year except that the benefit year shall be 53 weeks if the filing of an initial valid claim would result in overlapping any quarter of the base year of a previously filed initial valid claim.

(4) Calendar quarter means the period of three consecutive calendar months ending on March 31, June 30, September 30 or December 31, or the approximate equivalent thereof, as the Director of the Employment Department may, by rule, prescribe.

(5) Client employer means an employer that enters into a PEO relationship.

(6) Client worker means an individual who performs services for compensation for the client of a professional employer organization.

(7) Contribution or contributions means the money payments required by this chapter, or voluntary payments permitted, to be made to the Unemployment Compensation Trust Fund.

(8) Covered employee means a client worker for whom a PEO has assumed employer responsibilities under a PEO relationship.

(9) Educational institution, including an institution of higher education, means an institution:

(a) In which participants, trainees or students are offered an organized course of study or training designed to transfer to them knowledge, skills, information, doctrines, attitudes or abilities from, by or under the guidance of an instructor or teacher;

(b) That is accredited, registered, approved, licensed or issued a permit to operate as a school by the Department of Education or other government agency, or that offers courses for credit that are transferable to an approved, registered or accredited school;

(c) In which the course or courses of study or training that it offers may be academic, technical, trade or preparation for gainful employment in a recognized occupation; and

(d) In which the course or courses of study or training are offered on a regular and continuing basis.

(10) Employment office means a free public employment office or branch thereof, operated by this state or maintained as a part of a state-controlled system of public employment offices.

(11) Hospital has the meaning given that term in ORS 442.015.

(12) Institution of higher education means an educational institution that:

(a) Admits as regular students only individuals having a certificate of graduation from a high school, or the recognized equivalent of such a certificate;

(b) Is legally authorized in this state to provide a program of education beyond high school;

(c) Provides an educational program for which it awards a bachelor s or higher degree, or provides a program that is acceptable for full credit toward such a degree, a program of post-graduate or post-doctoral studies, or a program of training to prepare students for gainful employment in a recognized occupation; and

(d) Is a public or other nonprofit institution.

(13) Instructional capacity does not include services performed as an instructional assistant as defined in ORS 342.120.

(14) Internal Revenue Code means the federal Internal Revenue Code, as amended and in effect on December 31, 2023.

(15) Labor dispute means any concerted or deliberate action by two or more individuals or by an employing unit resulting in either a strike or lockout in which wages, hours, working conditions or terms of employment of the individuals are involved.

(16) Lockout means any refusal by an employer to permit employees to work as a result of a dispute with the employees affecting wages, hours or other terms or conditions of their employment.

(17) Nonprofit employing unit means an organization, or group of organizations, described in section 501(c)(3) of the Internal Revenue Code that is exempt from income tax under section 501(a) of the Internal Revenue Code.

(18) PEO relationship means an agreement between a PEO and a client employer under which certain employer responsibilities for some or all of the client employer s workers are allocated.

(19)(a) Professional employer organization or PEO means a person required to be licensed under ORS 656.855 that enters into a PEO relationship with a client employer.

(b) Professional employer organization or PEO does not mean a person that solely provides workers to a client on a temporary basis or a person that provides payroll processing or similar administrative services without assuming employer responsibilities for client workers.

(20) State includes, in addition to the states of the United States of America, the District of Columbia and Puerto Rico. However, for all purposes of this chapter the Virgin Islands shall be considered a state on and after the day on which the United States Secretary of Labor first approves the Virgin Islands law under section 3304(a) of the Federal Unemployment Tax Act as amended by Public Law 94-566.

(21) Strike means any concerted act of employees in a lawful refusal under applicable state or federal law to perform work or services for an employer.

(22) Taxes means contributions.

(23) Temporary basis means providing workers to a client:

(a) For special situations, including but not limited to employee absences, employee leaves, professional skill shortages, seasonal workloads and special assignments and projects with the expectation that the position will be terminated when the special situation ends.

(b) As probationary new hires with a reasonable expectation of transitioning to permanent employment with the client, if the client uses a preestablished probationary period in its overall employment selection program.

(24) Valid claim means any claim for benefits made in accordance with ORS 657.260 if the individual meets the wages-paid-for-employment requirements of ORS 657.150.

(25) Week means any period of seven consecutive calendar days ending at midnight, as the director may prescribe by rule. [Amended by 1959 c.642 1; 1961 c.252 1; 1963 c.13 1; 1969 c.597 174; 1971 c.463 1; 1977 c.241 1; 1983 c.528 1; 1993 c.344 3; 2005 c.218 3; 2007 c.614 16; 2008 c.45 17; 2009 c.5 27; 2009 c.595 1042; 2009 c.909 30; 2010 c.82 32; 2011 c.7 27; 2012 c.31 27; 2013 c.377 27; 2014 c.52 29; 2015 c.442 21; 2016 c.33 25; 2017 c.527 26; 2018 c.101 26; 2019 c.319 28; 2021 c.43 1; 2021 c.456 28; 2022 c.83 28; 2023 c.171 28; 2024 c.75 28; 2025 c.280 1; 2025 c.432 2a]

657.015 Employee. As used in this chapter, unless the context requires otherwise:

(1) Employee means any person, including noncitizens and minors, employed for remuneration or under any contract of hire, written or oral, express or implied, by an employer subject to this chapter in an employment subject to this chapter.

(2) Employee does not include a person who volunteers or donates services performed for no remuneration or without expectation or contemplation of remuneration as the adequate consideration for the services performed for a religious or charitable institution or a governmental entity. [Amended by 1999 c.734 1; 2025 c.43 6]

657.020 Employing unit. (1) As used in this chapter, unless the context requires otherwise, employing unit means:

(a) Any individual or type of organization, including any partnership, association, limited liability company, limited liability partnership, trust, estate, joint stock company, insurance company or corporation, whether domestic or foreign, or the receiver, trustee in bankruptcy, trustee, or successor thereof, or the legal representative of a deceased person, who has or had in its employ one or more individuals performing services for it within this state.

(b) This state, including every state officer, board, commission, department, institution, branch and agency of the state government.

(c) Any people s utility district.

(d) Any political subdivision.

(e) Any Indian tribe or subdivision, subsidiary or business enterprise wholly owned by an Indian tribe.

(2) All individuals performing services within this state for any employing unit that maintains two or more separate establishments within this state are deemed to be employed by a single employing unit for all the purposes of this chapter, except that for the purposes of this chapter each of the various agencies, boards, commissions, departments, institutions and political subdivisions of this state shall be deemed separate employing units. [Amended by 1955 c.655 1; 1957 c.682 1; 1959 c.398 1; 1973 c.715 1; 1977 c.295 1; 1995 c.93 37; 1997 c.646 14; 2001 c.572 1]

657.025 Employer. (1) As used in this chapter, unless the context requires otherwise, employer means any employing unit which employs one or more individuals in an employment subject to this chapter in each of 18 separate weeks during any calendar year, or in which the employing unit s total payroll during any calendar quarter amounts to $1,000 or more.

(2) Whenever any helper, assistant or employee of an employer engages any other person in the work that the helper, assistant or employee is doing for the employer, with the employer s actual, constructive or implied knowledge, the employer shall, for all purposes of this chapter, be deemed the employer of the other person, whether the other person is paid by the helper, assistant or employee or by the employer. All persons employed by an employer in all of the employer s several places of employment maintained within the state shall be treated as employed by a single employer for the purposes of this chapter. [Amended by 1953 c.494 1; 1955 c.655 2; 1959 c.405 1; 1971 c.463 2; 1973 c.300 1; 1975 c.257 1; 1981 c.77 1; 2007 c.46 1]

657.030 Employment generally; educational, hospital, nursing, student service exclusions. (1) As used in this chapter, except as provided in ORS 657.035, 657.040 and 657.043 to 657.094, employment means service for an employer, including service in interstate commerce, within or outside the United States, performed for remuneration or under any contract of hire, written or oral, express or implied.

(2) Notwithstanding any other provisions of this chapter, employment includes service that is:

(a) Subject to the tax imposed by the Federal Unemployment Tax Act; or

(b) Required to be covered under this chapter as a condition for employers to receive a full tax credit against the tax imposed by the Federal Unemployment Tax Act.

(3) Notwithstanding subsections (1) and (2) of this section, employment does not include:

(a) Service performed in the employ of a school, college or university, if the service is performed by a student who is enrolled and is regularly attending classes at the school, college or university, or by the spouse of the student, if the spouse is advised at the time the spouse commences to perform the service, that the employment of the spouse is provided under a program to provide financial assistance to the student by the school, college, or university, and the employment is not covered by any program of unemployment insurance.

(b) Service performed in the employ of a hospital, if the service is performed by a patient of the hospital.

(c) Service performed as a student nurse in the employ of a hospital or a nurses training school by an individual who is enrolled in a nurses training school chartered or approved pursuant to the laws of this state.

(d) Service performed by an individual who is enrolled at a nonprofit or public educational institution that normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried on as a student in a full-time program, taken for credit at the institution, that combines academic instruction with work experience, if the service is an integral part of the program, and the program has been approved by the Director of the Employment Department, and the institution has so certified to the employer, except that this paragraph does not apply to service performed in a program established for or on behalf of an employer or group of employers.

(e) Service performed by a full-time student in the employ of an organized camp described in section 3306(c)(20) of the Internal Revenue Code:

(A) If the camp:

(i) Did not operate for more than seven months in the calendar year and did not operate more than seven months in the preceding calendar year; or

(ii) Had average gross receipts for any six months in the preceding calendar year that were not more than 33-1/3 percent of its average gross receipts for the other six months in the preceding calendar year; and

(B) If the full-time student performed services in the employ of the camp for less than 13 calendar weeks in the calendar year.

(4) As used in subsection (3)(e) of this section, an individual shall be treated as a full-time student for any period:

(a) During which the individual is enrolled as a full-time student at an educational institution; or

(b) That is between academic years or terms if:

(A) The individual was enrolled as a full-time student at an educational institution for the immediately preceding academic year or term; and

(B) There is a reasonable assurance that the individual will be enrolled for the immediately succeeding academic year or term after the period described in subparagraph (A) of this paragraph. [Amended by 1959 c.405 2; 1971 c.463 5; 1975 c.257 2; 1981 c.77 2; 1987 c.263 1; 2011 c.106 3]

657.035 Employment; effect of place of performance of service. (1) The term employment includes an individual s entire service, performed within, or both within and without, this state if:

(a) The service is localized in this state; or

(b) The service is not localized in any state, and such service is not covered under the unemployment compensation law of any other state, the Virgin Islands or Canada, and

(A) The base of operations is in this state, or if there is no base of operations, then the place from which the service is directed or controlled is in this state, or

(B) The base of operations or place from which such service is directed or controlled is not in any state in which some part of the service is performed but the individual s residence is in this state.

(2) Service performed within this state but not covered under subsection (1) of this section is employment subject to this chapter if taxes are not required and paid with respect to such services under an unemployment insurance law of any other state or of the federal government.

(3) Services not covered under subsection (1) of this section, and performed entirely without this state, with respect to no part of which taxes are required and paid under an unemployment insurance law of any other state or of the federal government, are employment subject to this chapter if the Director of the Employment Department approves the election of the employer for whom such services are performed that the entire service of such individual shall be employment subject to this chapter. Such an election may be canceled by the employer by filing a written notice with the director between January 1 and January 15 of any year stating the desire of the employer to cancel such election or at any time by submitting to the director satisfactory proof that the services designated in such election are covered by an unemployment insurance law of another state or of the federal government.

(4) Service is localized within this state if:

(a) The service is performed entirely within this state; or

(b) The service is performed both within and without this state, but the service performed without the state is incidental to the individual s service within the state.

(5) Employment shall include the service of an individual who is a citizen of the United States, performed outside the United States (except in Canada or the Virgin Islands), in the employ of an American employer (other than service which is employment under the provisions of subsection (1) of this section or the parallel provisions of another state s law), if:

(a) The employer s principal place of business in the United States is located in this state; or

(b) The employer has no place of business in the United States, but

(A) The employer is an individual who is a resident of this state; or

(B) The employer is a corporation which is organized under the laws of this state; or

(C) The employer is a partnership or a trust and the number of the partners or trustees who are residents of this state is greater than the number who are residents of any one other state; or

(c) None of the criteria of paragraphs (a) and (b) of this subsection is met but the employer has elected coverage in this state or, the employer having failed to elect coverage in any state, the individual has filed a claim for benefits, based on such service, under the law of this state.

(6) An American employer for purposes of this section means a person who is:

(a) An individual who is a resident of the United States; or

(b) A partnership if two-thirds or more of the partners are residents of the United States; or

(c) A trust, if all of the trustees are residents of the United States; or

(d) A corporation organized under the laws of the United States or of any state.

(7) For the purposes of this section the term United States includes the states, the District of Columbia, and the Commonwealth of Puerto Rico. [Amended by 1971 c.463 6; 1973 c.300 2; 1977 c.295 2]

657.040 Employment; when service for pay excluded; independent contractors. (1) Services performed by an individual for remuneration are deemed to be employment subject to this chapter unless and until it is shown to the satisfaction of the Director of the Employment Department that the individual is an independent contractor, as that term is defined in ORS 670.600.

(2) A finding that an individual performed services for an employing unit and earned less than the minimum amount necessary to qualify for benefits under ORS 657.150 based on earnings from that employing unit may not be considered in determining whether the service is employment under subsection (1) of this section. [Amended by 1967 c.303 1; 1981 c.895 1; 1985 c.225 1; 1989 c.762 6; 2005 c.533 4]

657.042 [1981 c.895 3; 1983 c.579 1; repealed by 1989 c.762 8 and 1989 c.870 14]

657.043 Employment; golf course caddy service excluded; exceptions. Employment does not include service performed by a person as a caddy at a golf course in an established program for the training and supervision of caddies under the direction of a person who is an employee of the golf course. However, the provisions of this section do not apply to services performed for:

(1) A nonprofit employing unit;

(2) This state;

(3) A political subdivision of this state; or

(4) An Indian tribe. [1993 c.494 4; 2001 c.572 2; 2005 c.218 8]

657.044 Employment; service by partners and corporate officers and directors who are family members and by certain sole corporate officers and directors excluded; election; exceptions. (1) As used in this chapter, employment does not include service performed for:

(a) A corporation by corporate officers who:

(A) Are directors of the corporation;

(B) Have a substantial ownership interest in the corporation; and

(C) Are members of the same family.

(b) A corporation by an individual who is the sole corporate officer and director of the corporation and who has a substantial ownership interest in the corporation.

(c) A limited liability company by a member, including members who are managers, as defined in ORS 63.001.

(d) A limited liability partnership by a partner as described in ORS chapter 67.

(2)(a) The exclusion under subsection (1)(a) or (b) of this section is effective only if the corporation elects not to provide coverage for the individuals described respectively in subsection (1)(a) or (b) of this section.

(b) The election must be in writing and is effective on the first day of the current calendar quarter or, upon request, on the first day of the calendar quarter preceding the calendar quarter in which the request is submitted.

(3) The provisions of this section do not apply to service performed for:

(a) A nonprofit employing unit;

(b) This state;

(c) A political subdivision of this state; or

(d) An Indian tribe.

(4) As used in this section, members of the same family means persons who are members of a family as parents, stepparents, grandparents, spouses, sons-in-law, daughters-in-law, brothers, sisters, children, stepchildren, adopted children or grandchildren. [1995 c.220 2; 1997 c.646 15; 1999 c.59 195; 2001 c.572 3; 2003 c.792 1; 2005 c.218 9; 2009 c.79 1; 2013 c.311 1]

657.045 Employment; agricultural labor excluded; exceptions. (1) Employment does not include agricultural labor unless such labor is performed after December 31, 1977, for an employing unit who:

(a) During any calendar quarter in the current calendar year or the preceding calendar year paid remuneration in cash of $20,000 or more to individuals employed in agricultural labor; or

(b) On each of 20 days during the current calendar year or the preceding calendar year, each day being in a different calendar week, employed in agricultural labor for some portion of the day (whether or not at the same moment of time) 10 or more individuals.

(2) Notwithstanding subsection (1)(a) and (b) of this section, employment does not include services performed before January 1, 1993, by an individual who is a noncitizen admitted to the United States to perform agricultural labor pursuant to sections 214(c) and 101(a) (15) (H) of the Immigration and Nationality Act.

(3) Agricultural labor does not include services performed for the state or a political subdivision but does include all services performed:

(a) On a farm, in the employ of any person, in connection with cultivating the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training and management of livestock, bees, poultry and fur-bearing animals and wildlife.

(b) In the employ of the owner or tenant or other operator of a farm, in connection with the operation, management, conservation, improvement or maintenance of such farm and its tools and equipment, or in salvaging timber or clearing land of brush and other debris left by a hurricane, if the major part of such services is performed on a farm.

(c) In connection with the production or harvesting of any commodity defined as an agricultural commodity in section 15(g) of the Federal Agricultural Marketing Act, as amended, or in connection with the ginning of cotton, or in connection with the operation or maintenance of ditches, canals, reservoirs or waterways not owned or operated for profit used exclusively for supplying and storing water for farming purposes.

(d) In the employ of the operator or group of operators of a farm or farms (or a cooperative organization of which such operator or operators are members) in handling, planting, drying, packing, packaging, processing, freezing, grading, storing or delivering to storage or to market or to a carrier for transportation to market, in its unmanufactured state, any agricultural or horticultural commodity, but only if such operator or group of operators produced more than one-half of the commodity, as measured by volume, weight or other customary means, with respect to which such service is performed.

(4) Subsection (3)(d) of this section does not apply to service performed in connection with:

(a) Commercial canning, commercial freezing or brining of cherries;

(b) Any agricultural or horticultural commodity after its delivery to a terminal market for distribution for consumption; or

(c) Any activity enumerated in subsection (3)(d) of this section when performed for an employer also engaged in any activity enumerated in paragraph (a) or (b) of this subsection.

(5) Farms, as used in this section, includes stock, dairy, poultry, fruit, fur-bearing animal, Christmas tree and truck farms, plantations, orchards, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities.

(6) For the purpose of this section, service in connection with the raising of forestry-type seedlings is agricultural labor when performed in a nursery.

(7)(a) For purposes of this chapter, and for services performed after December 31, 1977, any individual who is a member of a crew furnished by a crew leader to perform agricultural labor for any other person shall be treated as an employee of such crew leader if:

(A) Such crew leader holds a valid certificate of registration under the federal Migrant and Seasonal Agricultural Worker Protection Act; or

(B) Substantially all the members of such crew operate or maintain mechanized equipment which is provided by such crew leader; and

(C) Such individual is not an employee of such other persons under the usual common law rules applicable in determining the employer-employee relationship.

(b) Any individual who is furnished by a crew leader to perform agricultural labor for any other person and who is not treated as an employee of such crew leader under paragraph (a) of this subsection shall be an employee of such other person and such other person shall be treated as having paid cash remuneration to such individual in an amount equal to the amount of cash remuneration paid to such individual by the crew leader, either on behalf of the crew leader or on behalf of such other person, for agricultural labor performed for such other person.

(c) For purposes of this subsection, the term crew leader means an individual who:

(A) Furnishes individuals to perform agricultural labor for any other person;

(B) Pays, either on behalf of the crew leader or on behalf of such other person, the individuals so furnished by the crew leader for the agricultural labor performed by them; and

(C) Has not entered into a written agreement with such other person under which such individual is designated as an employee of such other person. [Amended by 1955 c.655 3; 1957 c.395 1; 1971 c.463 7; 1973 c.260 1; 1977 c.446 1; 1987 c.263 2; 1989 c.631 1; 1993 c.18 141; 2022 c.97 16]

657.046 Employment; operation of taxicab or passenger vehicle for nonemergency medical transportation by owner or lessee of vehicle for entity operated by board of owner-operators; exceptions. (1) As used in this chapter, employment does not include service performed in the operation of a passenger motor vehicle that is operated as a taxicab or a passenger motor vehicle that is operated for nonemergency medical transportation, by a person who has an ownership or leasehold interest in the passenger motor vehicle, for an entity that is operated by a board of owner-operators elected by the members of the entity.

(2) As used in this section:

(a) Leasehold has the meaning given that term in ORS 656.027 (27).

(b) Passenger motor vehicle that is operated as a taxicab means a vehicle that:

(A) Has a passenger seating capacity of at least three persons and not more than seven persons;

(B) On a route that begins or ends in Oregon, is used primarily to transport persons;

(C)(i) Carries passengers for hire when the destination and route traveled may be controlled by a passenger and the fare is calculated on the basis of any combination of an initial fee, distance traveled or waiting time; or

(ii) Is in use under a contract to provide specific service to a third party to transport designated passengers to locations selected by the third party; and

(D) Is not used more than secondarily or incidentally for errand services or to transport property, instead of or in addition to transporting passengers.

(c) Passenger motor vehicle that is operated for nonemergency medical transportation means a vehicle that:

(A) Has a passenger seating capacity of at least three persons and not more than seven persons;

(B) On a route that begins or ends in Oregon, is used primarily to transport persons;

(C) Provides medical transportation services under contract with or on behalf of a mass transit or transportation district; and

(D) Is not used more than secondarily or incidentally for errand services or to transport property, instead of or in addition to transporting passengers.

(3) The provisions of this section do not apply to service performed for:

(a) A nonprofit employing unit;

(b) This state;

(c) A political subdivision of this state; or

(d) An Indian tribe. [2012 c.109 2; 2021 c.453 16]

657.047 Employment; transportation of logs, poles and piling and lessor of for-hire carriers excluded; exceptions. (1) As used in this chapter, employment does not include:

(a) Transportation by motor vehicle of logs, poles and piling by any person who both furnishes and maintains the vehicle used in such transportation; or

(b) Transportation performed by motor vehicle for a for-hire carrier by any person that leases their equipment to a for-hire carrier and that personally operates, furnishes and maintains the equipment and provides service thereto.

(2) For the purposes of this chapter, services performed in the operation of a motor vehicle specified in subsection (1) of this section shall be deemed to be performed for the person furnishing and maintaining the motor vehicle.

(3) As used in this section for-hire carrier has the meaning given that term in ORS 825.005.

(4) The provisions of subsections (1) and (2) of this section do not apply to services performed for:

(a) A nonprofit employing unit;

(b) This state;

(c) A political subdivision of this state; or

(d) An Indian tribe. [1963 c.469 2; 1987 c.891 3; 1995 c.306 39; 2001 c.572 4; 2005 c.218 10]